How does Regional Entrepreneurship Transfer over Time? The Role of Household Size and Economic Success

Michael Fritsch and Michael Wyrwich
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Michael Wyrwich: University of Groningen

No 2023003-I&O, Research Report from University of Groningen, FEB Research Institute (FEBRI)

Abstract: Mounting empirical evidence shows that regional differences ofentrepreneurship are persistent over long periods of time that may reflect theprevalence of an entrepreneurial culture. We explore three importantmechanisms behind the transmission of such an entrepreneurial culture. First,we analyze the role model effects at the household level. We hypothesize thatthe larger the households of self-employed, the greater the opportunities forrole model effects such as an intergenerational transfer of entrepreneurialvalues and attitudes, and hence the higher the regional start-up rate in laterperiods. Second, we investigate how the economic success of regionalentrepreneurs fuels the role model effects. Third, we analyze if and to whatextent the economic success in of regional entrepreneurship stimulates acollective memory of historical entrepreneurship that spurs self-employmentin later periods. The analysis of entrepreneurship in German regions over aperiod of more than 90 years provides support for the significance of all threetransfer channels.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gro:rugfeb:2023003-i&o

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